Ep #73: You're Losing Money on Your Labor Rates with John Shoemaker
Thank you to our sponsor - Lombard Equipment! Selling equipment for over 30 years who not only does training IN your shop they do hands-on training ON YOUR EQUIPMENT! :)
https://lombardequipment.com/
"Reverend" John Shoemaker of BASF is what I like to call him! John always has great input and today he's talking about charging for the proper labor rates with proper labor times.
What's the difference? Labor types depict the labor rates!
Why do we not talk about that more often?
Most shops are using body and refinish as a labor type and we need to identify the skills the techs are using to perform the repairs. This is beyond "structural" and "non-structural". Shops are currently paying out more than they are receiving due to this labor type and rate!
- Listen in as John gives the formulas on how to figure out what your labor rate is and how to adjust that.
- John recommends starting with your accountant and figure out what it costs to have an employee and you can go from there.
- Quick check to see if you're making money on your labor : Look at your net profit = 2-3% of your parts gross profit. If it is then most money is being made by parts and not labor!
Reach out to John Shoemaker directly:
Email: john.a.shoemaker@basf.com
LinkedIn: https://www.linkedin.com/in/john-shoemaker-amam-a0800020/
Website: https://www.basf.com/us/en.html
For more info on Micki's Marketing Services to help you grow your shop's revenue click here: https://collisioncentermarketing.com
Email Micki directly at micki@mickiwoodsmarketing.com
Join the Body Bangin' Facebook Group!
https://www.facebook.com/groups/989546031854134